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TFC Commodity Trading Forum

Sept Nat Gas/Critical Point *PIC*

Sept Nat Gas closed below the 4.21 support but with a high tailed bar and no follow through to the downside. Price Friday actually closed back above the 4.21 breakdown point the next trading day after the breakdown. "IF" this was a false breakdown expect some fireworks on the upside despite the sideways basebuilding pattern NG is in. Nothing more bullish than a false breakdown. Only a cross above the downtrendline would suggest this is the case with a tradable rally ahead. A drop back below 4.21 would confirm the breakdown and suggest a drop to the next support at 4.00. Keep in mind price did 'test' the 4.00 support level by dropping to an intraday low of 4.06. Shouldn't take long to find out which way it's about to turn short term. Seasonally NG does typically have a bounce from the last 1/2 of July into mid August.